Technology continues to revolutionize the trucking industry. The newest development has been the introduction of highly automated vehicles, or HAVs. Just last week, the Federal Government took its first steps in regulating this technology through the Federal Automated Vehicles Policy.

Mark Rosekind, the head of the DOT’s National Highway Traffic Safety Administration, believes HAVs, vehicles that can take full control of driving tasks in at least some circumstances, along with these new regulations can help dramatically reduce those numbers. In the United States, of all the car crashes in 2015, 94% were caused by human error.

Safety is also the number one goal of the policy. The Obama administration stated that the policy is designed to help create a safer, cleaner, more accessible, and more efficient form of transportation.

What impact do HAVs have on the trucking industry? Experts believe that these vehicles will be the first real big change for the industry since deregulation, and may have a positive effect on the on-going driver shortage. Transportation economist, Noël Perry, who spoke at the 2016 FTR Conference believes that these automated vehicles could save trucking companies $1 on every mile in operating costs. Lower operating costs would result from a combination of lower insurance costs, better fuel economy, and higher productivity of automated trucks.

As HAV technology and the regulations surrounding it continues to develop, transportation companies will have to stay abreast of new trends in the industry.

This past week, we celebrated National Truck Driver Appreciation Week. Though this week of appreciation has passed, the idea of retaining drivers cannot fall to the wayside.

This begs the question: How do we keep our drivers happy?

For years, motor carriers across the country have used various efforts to find and retain drivers. Often retaining drivers comes down to competitive driver pay, but is that the only factor to be considered? This is a complex industry and one where drivers who are respected and valued has high and often equal impact on retention as pay rates.

Stay Metrics has conducted an ongoing survey with over 80 motor carriers to help find the answer to the driver retention question. So far, the most decisive factor in determining driver happiness seems to be home time and work-family conflict. The Stay Metrics survey showed that drivers dissatisfied with their home time are 93.4% more likely to quit, while those with a work-family conflict are close to 60% more likely to leave.

Home time and work-family conflict cannot be the only factors considered when discussing retention, and that, again, brings up the subject of pay. Interestingly, this survey shows that drivers who are satisfied with their pay are actually more likely to quit at the three month mark than those who are not. This statistic is actually very close, with those more likely to quit at 55.8% of those surveyed.

Even though the numbers are so close, Mike Khron, the vice president for PGT Trucking continues to stress the importance of pay in the industry. He brings up an interesting point when stating that “driver pay has not gone up with inflation, let alone comparison to other occupations.” Should companies also factor in a generational difference? A TD Ameritrade survey found that while millennials require less money to consider themselves happy, the idea of saving makes them feel secure. The idea of saving equates with the idea of freedom.

After looking at these factors, all transportation companies have to come up with their own answer of what combination of pay, home time and work-family balance will benefit their drivers. Companies need to derive their own strategies as the driver shortage is creating more competition and drivers will naturally go where they find the most satisfaction.

Amidst the many alternatives for fuels out there, biodiesel is a great option for fleets interested in greater efficiency and reducing their environmental footprint. It also opens new opportunities to use cleaner vehicles and work with other green partners.

Vince Buonassi, G&D Integrated group manager of transportation programs, has fully transitioned to biodiesel after starting with a blend.

“[Ag-Land FS Inc.] were claiming that this product would not only cost us less money but would not result in any efficiency losses,” says Buonassi. “What we observed was there was absolutely zero degradation in performance.”

Transportation, logistics, and warehousing are among the services of G&D’s operation. With a fleet of over 400 vehicles and more than 25 million miles of travel per year, this change has radically decreased the carbon dioxide emissions to almost 230,000 fewer gallons annually.

Chicago-based Testa Produce has also completely converted their fleet of over 50 vehicles to biodiesel. “As a produce company, we’re naturally a green company,” Peter Testa, business owner says. “So, using renewable energy and environmentally friendly fuels all kind of fits together.”

Green initiatives have even decreased Testa annual costs by 15%. This also includes their efforts to maintain a green-friendly facility in addition to their vehicles.

While biodiesel can go a long way, other sustainability efforts like investing in lighter weight components or minimizing drag can also save you money and decrease your footprint’s impact. With some smart setup and innovative thinking, going green can make your fleet even more efficient.

Tires are a large investment for any truck on the road, and account for a top 3 annual expense for the trucking industry. Selecting the right tires while properly inflating them is paramount to making them last, you can leverage balancing to increase efficiency even further.

However the most effective method of tire balancing is debated, and whether or not it’s worth the cost.

“The main reason that tire balancing isn’t common in heavy trucks is the perception of time required,” says IMI Products associate product manager Derek A. Forney. “With the added factor of recommended re-balancing every 20,000 miles, using wheel weights isn’t practically feasible for balancing some or all wheel positions.”

Spin balancing can add up to 15 minutes for each tire on installation, says Forney.

Lone Star Truck Group’s fleet services manager, Ken Eggen, also agrees balancing is a worthwhile endeavor in practice, however the number of hours required has kept him from mandating the process.

“When I ran 1,000 trucks in a fleet, it’s just tough to take the time,” says Eggen.

Bob Jessee, regional account manager for Centramatic, contends that any elimination of vibrations that can be done, should be done. Controlling what you can in that regard will make all parts last longer.

Jessee cites “visible and controllable forces” like worn suspension parts, torqued bearings, and incorrectly mounted tires are commonly fixed. However imbalance tends to be more “invisible,” but still controllable, therefore it gets ignored by many.

Centramatic, an onboard balancer, mounts on the hub before the wheel which balances the tire, as well as the complete wheel assembly permanently and continuously. Jessee contends that, unlike drop-in solutions, Centramatic is portable and can be removed and installed on another truck in the same application.

Such options offer a “once and done” solution rather than continuously adjusting or swapping out tires - that might save costly hours and make balancing worth the investment.

Truck tonnage’s all-time high, 144, recorded back in February has taken a dive in July at 134.3, which has been part of a downward trend for the previous five months also.

“This prolonged softness is consistent with a supply chain that is clearing out elevated inventories,” ATA Chief Economist Bob Costello said in the report. “Looking ahead, expect a softer and uneven truck freight environment until the inventory correction is complete. With moderate economic growth expected, truck freight will improve the further along the inventory cycle we progress.”

Another version of the index, one that is not adjusted seasonally, reports a 138.2 in July, which was a 2.7% drop from the previous month.

The report states trucks hauled around 10 billion tons of freight in 2014 alone, and that motor carriers obtained around $700 billion in revenue.

ATA determines the tonnage index based upon data from surveys since the 1970s, and says that the index is a “preliminary figure and subject to change in the final report issued around the 10th day of the month.” Results are taken both month-by-month and year-over-year.

“Unlike most industries (especially manufacturing) the trucking industry did not appreciably increase productivity per truck during the recession or after it,” says Swain. “It would have been logical to do so since it would not require buying more trucks, just getting more revenue miles out of the ones they had.”

Swain suggests five key steps on how fleets can maximize their productivity and efficiency, which he argues are key to success for trucking companies.

Measure

Even small and medium size carriers need to build measuring into their process. Determining profit and specifically what kind of margins exist is vital. Fueling surcharges should not be included in your productivity numbers, however. Rather, gauge how well fueling surcharges are doing by directly measuring it against fuel cost.

Utilize TMS

A good computer management system is an essential way to accurately track and measure activity. Sometimes there are issues with adopting new tech, despite purchases of digital tracking management systems. Considering organizing by planning, ales, and driver managers.

Per-truck productivity

Looking at trucks individually can vastly improve your bottom line. It doesn’t necessarily need to be every single truck in the fleet, but per-truck attention can increase your gross margin by squashing variable expenses like driver pay, parts, and fuel.

Top down change

Drivers should be given a strong understanding of the importance of their role. If you don’t share the numbers, they can’t see the big picture. Tying customer/driver/mil consciousness with revenue and profits can build a stronger team.

The right people in the right positions

Once measures are taken to track productivity, efficiency, and providing proper incentive to drivers, it becomes time to evaluate whether or not you have the right people in the right positions. This process takes time and can vary drastically, but is important to consider. With proper tracking, however, performance and strengths can be identified more accurately and more readily.

The plan’s latest iteration, according to the California Air Resources Board, says it is further informed by “industry, labor, regional and local government, and community and environmental group stakeholders,” despite it being largely similar to the initial document.

CARB’s aim with this initiative is to decrease the industry’s environmental footprint while also providing a solution for more competition and higher efficiency. The plan was in response to Governor Jerry Brown’s executive order, and was an effort of numerous state agencies.

Critiques of the plan include not taking into account the current spending on environmental improvement efforts, an unnecessary amount of regulation, and it being “an interference in the goods-movement marketplace.” [source]

“If the true intent of this program is to advance zero and near-zero emission technology, then California must make the case for billions of dollars of new private investment in the state,” said Yadon. “Continuing to signal that draconian new rules are on the horizon will only hurt this effort.”

The action plan includes a “2050 vison” and goals for moving the industry forward in these ways:

On July 28th, three advocacy groups sent the National Highway Traffic Administration a letter pushing them to cease their adoption of “robot car technology.” The reasons cited were that, at present, robot driving technology doesn’t meet current safety standards and lacks the necessary testing to be moved forward.

The NHTSA’s Administrator, Mark Rosekind, had expressed that the association didn’t intend to remain idle while this new technology was being developed. “Of course we have to do everything we can to make sure new technology does not introduce new safety risks, but we also can’t stand idly by while we wait for the perfect,” Rosekind said in a remark.

Among those that wrote to Rosekind were president emeritus of Public Citizen, executive director of Consumer Watchdog Carmen Balber, executive director of the Center for Auto Safety Clarence Ditlow, and Consumer Watchdog’s Privacy Project director John M. Simpson.

The letter implored the NHTSA to consider the serious security flaws in current robot driving technology, like Tesla’s self-driving car flaws, and to recall such problem tech instead of moving forward with it. It also accused Rosekind and company with being “giddy advocates of self-driving cars” and warned them to take more seriously security measures in the future.

“Someday, autonomous technologies can save lives,” says the letter. “But they should only be implemented after thorough testing and public rulemaking that sets enforceable safety standards.”

The price-drop trend for diesel has been going on for months, and last week it dropped even further.

According to the Department of Energy, diesel fuel has dropped by roughly 2.3 cents per gallon last week alone, putting the current average price at $2.19. Comparing prices to this time last year, it’s a drop of 34.4 cents.

Standard gas prices have also fallen, dropping 4.8 cents in the past week, totaling to an average of $2.18 per gallon.

By region, the Midwest took the greatest dive in price, with a 2.8 cent decrease. The Rocky Mountain region, by contrast, only had a 0.1 cent decline however.

With the adoption of hybrid and electric vehicles, demand for crude oil and diesel fuel has gone down, and the trend continues. Massively increased production of oil has contributed also.

According to CNBC, oil is at its lowest since April 25. Per barrel, Brent crude had oil at $44.65 per barrel, and U.S. crude had oil at $43.13 per barrel. Three months ago, oil settled at approximately $42.64 per barrel.

Analysts are saying, however, that the drops may not necessarily result in an imminent rise.

"Although drilling activity is now at its highest level since the end of March, it is still 30 percent below the level at which it found itself at the beginning of the year." Said Commerzbank analysts.

As an acting Administrator, Darling’s primary focus has been reducing fatalities and crashes among large bus and trucks. Transportation Secretary Foxx is in support of his efforts, “His collaborative approach has moved the ball forward on commercial motor vehicle safety. I look forward to our continued work together and congratulate him on his confirmation.”

According to ZF Friedrichshafen AG, digital enhancements will be a major component of trucking in the next two decades.

The Germany-based company unveiled a concept tractor-trailer equipped with their Evasive Maneuver Assist tech which autonomously steers and brakes to avoid collisions, an advanced hybrid drive train, remote vehicle backing for ease of docking, and more.

“Automated driving is real and it’s here to stay in the trucking industry,” Peter Lake, member of the ZF board. “We’re in a period of change like no other seen [in the industry].”

At speeds below 30 mph, the truck runs solely on electric power. Not only does this advancement cut down significantly on emissions, but encourages partner companies to focus on alternative fuel development.

Automated backing systems allowed this concept truck to exit docking stations and back into them remotely.

SF’s CEO, Sefan Sommer, points to three significant “megatrends” in the automotive industry that push their work: efficiency, safety, and automated driving.

“Our focus is 2025,” Sommer says. “We have to rethink the architecture of automobiles to have new concepts and new technologies.”

These innovations introduce an “intelligence” component to mechanical systems. This new connected-research-and-development approach will lead to rolling out new technology company-wide more rapidly, for instance, via an internet connection.

Dubbed “smart hardware,” this truck’s tech won’t only affect the European trucking industries, but international markets as well.

While safety training accounts for the bulk of it (36%), spending on safety compliance (25%), onboard safety technologies (25%), and safety incentive pay (13%) play significant roles as well. ATA gathered these numbers based upon data from surveys taken in 2014 and 2015.

Maintenance costs are not included in this report; such as expenses for replacing tires or fixing brakes, and trucks, which are serious investments.

Recent standards in regulatory compliance ensure regular vehicle and driver record checks, alcohol and drug testing, and voluntary safety audits. Bonuses and awards also incentivize drivers to be as safe as possible on the road.

“Before this survey, we were only able to conservatively estimate our industry’s commitment to safety,” said Kevin Burch, ATA First Vice Chairman and president of Jet Express. “Now, thanks to the efforts of ATA, we can see just how much our industry is investing in safety as well as the results of these investments – improved safety for all motorists.”

Depending on a rig’s particular configuration, the types of aerodynamic implementation strategies may vary. The tips below are based upon results that assume trucks traveled at 77,500 miles on the freeway out of 100,000 overall per year. The difference was to account for how often trucks don’t drive at highway speeds.

Utilize gap devices. Nose fairings can help round out the front of trailers, both for sleeper-cabs and day cabs. This results up to 425 gallons of fuel each year for day cabs. Full plate seals can work as well, but are typically only effective for sleeper cabs.

Decrease tractor-trailer gap. A study found that decreasing a 36 inch gap to 24 inches can reduce fuel consumption by 50 gallons per year. Roughly, both day-cab and sleeper models can see drag reductions by 2.7% per each foot of gap.

Match the heights of tractors and trailers. The greater disparity of height, the greater potential consumption of fuel.

Take advantage of underbody devices and side skirts. Full-length skirts perform better than standard and split skirts, and have been suggested to save 950 gallons and 750 gallons of fuel respectively.

Treatment of boat tail configurations. Regardless of the type of configuration, boat tail devices in varying lengths will perform well, saving up to 500 gallons per year on fuel.

Use side skirts on deck-type trailers. Depending on cargo, flatdeck side skirt use could save anywhere between 425 and 750 gallons per year in fuel.

Use a variety of aero device combinations. Combining standard and extended side skirts, looking at using different lengths of boat tail, and minding gap reductions where possible can lead to even great reductions in gas consumption.

On June 16, a press conference was held at Newark City Hall where Newark Mayor, Ras Baraka, was joined by community activists, unions, and other key politicians to push for the aggressive plan. Previously, PAYNYNJ committed to banning 1994 and 1995 engines by 2018, as well as $1.2 million to assist in the projected $9 million in federal grants required to assist truck owners for proper replacement.

In addition, there are concerns about the increased maintenance costs required for CARB-compliant trucks. Alternative solutions for cleaner-air solutions have also been suggested, such as investments in anti-idling equipment that may be more cost-effective long term.

NJ legislators are considering similar bills that would potentially impact the same areas, including NY-based ports.

Modeled after a 15-state coalition that governs Interstate 95, running the length of the east coast, the four states will enable resource sharing, joint testing and economies of scale. The coalition is hoping to solve the issue of friction by implementing “best practices” with safety and efficiency improvements, improvements in freight movement, expansion and coordination of technology, and cooperative planning.

On top of improving traveler’s experience, the improvements could improve overall export relations. This is especially important because the four states involved hold the 10th largest economy in the world. Having an innovative plan for more efficient travel and exporting could show a decrease in shipping time and an overall drop in associated costs. With future growth taken into account, this strategic move could help curb future expenditures as the I-10 corridor slowly fills with platoons of trucks and connected vehicles, weigh-in-motion sensor, and automated truck parking lots.

With the ever changing trucking environment, the ATA Management Conference and Exhibition is the annual go-to stop of the year where industry leaders convene. The schedule of events list activities which kick off Friday, September 30. The conference begins with a golf tournament; is packed with multiple break-out sessions and wraps up with a banquet featuring award winning artist, John Fogerty.

Break-out sessions include topics revolving around the regulatory and political environment, electronic logging devices, and the future of truck safety. Service awards are presented throughout the span of the conference.

The latest products from industry suppliers will be available to attendees housed in the Shoreline Ballroom at Mandalay Bay. In addition to product displays, there are plenty of opportunities for education and networking with colleagues across the country.

This event is the preeminent, must-see industry conferences each year, and because it is geared towards high-level executives, MCE brings extensive value to each attendee,” said ATA Chairman Pat Thomas, senior vice president of state government affairs at UPS.

What could this mean to the transportation industry? It all depends on whether manufacturers will rally to set a single national standard instead of needing to build two different engines. Having a set standard would guide manufacturers in creating one engine system that would translate to various powertrains and across state lines. This could mean significantly lower manufacturing costs and help reducing entry barriers for many smaller diesel manufacturers.

The measure would most likely provide a boost in natural gas and other alternative fuels for powertrains throughout the state. Drivers can look forward to low-NOx natural gas engines, alternative fuels such as dimethyl ether (known commonly as DME), and well-known manufacturers such as Volvo leading the way.

The Senate passed its own version of the 2017 THUD bill on Thursday, May 19th which ties the future of any - 34-hour restart provisions directly to the results of the FMCSA’s congressionally mandated study on the 2011 restart provision.

To continue the momentum, American Trucking Association strongly encourages a speedy resolution of differences between the Senate and House Appropriations Committee on the bill. One goal is to clarify the process so drivers can easily monitor their hours. More detailed information is available in a Q&A on ATA’s website. The ATA also noted clarity surrounding interstate trucking and regulations would benefit consumers and the national economy.

ATA President and CEO Bill Graves stated, “in addition to allocating funding for important transportation projects, this legislation will ensure that commercial drivers can still utilize the 34-hour restart provision of the hours-of-service rules.” Read more about the approval of the Fiscal Year 2017 Transportation, Housing and Urban Development Funding Bill.

In 2015 the freight trend remained uneventful. What arose seemed to fizzle before developing into the disruptive events they were thought to be. Financial earnings were flat and the Transportation Services Index measured a couple point increase in industry output.

Despite the relatively calm 2015, Strategy& points out several forces stewing beneath the surface that are changing commercial transportation and logistics customers’ needs. Customers are beginning demand more flexible, strategic and responsive supply chain networks. Some of the new trends include: the goal to reduce delivery time, the expectation of high quality handling for high quality items, the continued growth in e-commerce, and the unpredictable events from peaks in demand to natural disasters.

“Shippers want logistics partners that can operate across their diverse supply chains and distribution networks and that are strategically inclined.” – Strategy&

These underlying trends and new consumer needs have resulted in the emergence of different types of shippers. Strategy& names and expands on five disruptors: local network builders, crowd sourcing fillers, startup simplifiers, big data manipulators, and hybrid carriers.

Recent DAT trendlines released finally show a glimmer of positive movement for the freight market. According to DAT Solutions, van, flatbed and reefer truckload rates experienced an increase in the first week of May. DAT is hopeful this movement is a precursor to a continued upward trend.

Nikola Motor Company announced its work on a cutting edge electric tractor. With a 2,000-hp, AWD, the hybrid-electric tractor with a turbine range it is expected to cut the standard operating costs of a diesel tractor trailer in half. They are calling the vehicle, Nikola One.

The vehicle’s proprietary turbine is able to burn many common fuels including, diesel, gasoline or natural gas and will automatically spin the generator to charge the batteries. Trevor Milton, founder and CEO of Nikola Motor Company, explains the Nikola One is designed with a range of 1,200 miles on 150 gallons of fuel and will have the ability to pull an 80,000 pound trailer up a 6% grade at 65mph.

“By working together with some of the top engineering firms in America, we were able to design vehicles that have previously been thought impossible to design,” said Milton. The first prototype is scheduled to be displayed later this year.